Amazon (AMZN), Berkshire Hathaway (BRK.A) and JPMorgan Chase & Co. (JPM) announced Tuesday a partnership to address health care for their U.S. employees, with the goal of improving employee satisfaction while reducing costs.
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The three companies will form an independent company to pursue this objective “free from profit-making incentives and constraints,” according to the companies’ release on the partnership.
The initial focus of the new company will be on technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent health care at a reasonable cost.
All three of the companies’ leaders weighed in on the partnership, with Berkshire Hathaway chairman and CEO Warren Buffet saying: “The ballooning costs of healthcare act as a hungry tapeworm on the American economy. Our group does not come to this problem with answers. But we also do not accept it as inevitable. Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”
“Hard as it might be, reducing healthcare’s burden on the economy while improving outcomes for employees and their families would be worth the effort,” said Amazon founder and CEO Jeff Bezos.
“Our people want transparency, knowledge and control when it comes to managing their healthcare. The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans,” said Jamie Dimon, chairman and CEO of JPMorgan Chase.
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The effort announced today is in its early planning stages, and the companies will provide further details as they are available.
